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Excise Tax

A tax imposed on the sale or use of specific goods or services, rather than on income or property. In this case, it's a tax on certain types of loans.

Secured Loan

A loan where the borrower offers an asset, like a house or investments, as collateral to guarantee repayment. If the borrower doesn't pay back the loan, the lender can take the asset.

Line of Credit

An arrangement allowing a borrower to draw money as needed, up to an approved limit, and only pay interest on the amount actually borrowed. It's a flexible loan that can be used repeatedly.

Capital Assets

For tax purposes, most property you own and use for personal or investment purposes, such as stocks, bonds, artwork, or real estate (excluding property used in a trade or business, or certain other types of property). This bill specifically refers to assets like stocks and bonds, but excludes things like your primary home.

Adjusted Gross Income (AGI)

Your gross income (total income from all sources) minus certain specific deductions, such as contributions to a traditional IRA or student loan interest. It's a key number used to determine eligibility for various tax credits and deductions.

Internal Revenue Code of 1986

The main body of federal tax law in the United States, which the Internal Revenue Service (IRS) enforces. This bill proposes an amendment, meaning a change, to this existing law.